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IV.  CORRUPTION PREVENTION IN CENTRAL GOVERNMENTS (TOP EXECUTIVE FUNCTIONS)

               System of government and top executive functions

               System of government

               15.    The Netherlands is a constitutional monarchy and a parliamentary democracy. The King is the
               Head of State and the Prime Minister (PM) is the Head of the  Government (Council of Ministers,
               Cabinet). Formally the government consists of the King and the ministers and state secretaries, but in
               reality it is the PM/ministers/state secretaries, and not the King, who are responsible for the acts of
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               the  government ,  including  the  running  of  the  day-to-day  governmental  affairs  and  the  decision-
               making.

               16.    The Cabinet is accountable to Parliament, which is elected every four years. The Cabinet as
               well as the individual ministers/state secretaries stay in power as long as they enjoy the confidence
               of  Parliament.  The  “rule  of  confidence”  is  one  of  the  most  important  and  crucial  government
               principles in the Netherlands, although it is not laid down in the Constitution or law. By expressing
               lack of confidence, Parliament can force a cabinet (or an individual minister or secretary of state) to
               resign.

               17.    The  King  does  not  attend  the  Council  of  Ministers’  meetings  but  he  delivers  the  annual
               “speech from the throne” in which the government, through the King, outlines government policy for
               the  next  budgetary  year  to  Parliament.  The  King  signs  all  Acts  of  Parliament  and  Royal  Decrees,
               including the ones on appointment and dismissal of high ranking officials, but the Prime Minister,
               relevant ministers or state secretaries initiate and take responsibility for them. The King represents
               the Kingdom of the Netherlands at home and especially abroad, which is a ceremonial function. At
               no point does the King exercise discretionary powers in an executive capacity.

               18.    As agreed by GRECO, a head of State would be covered by the 5th evaluation round under
               “central governments (top executive functions)” when s/he actively participates on a regular basis in
               the  development  and/or  the  execution  of  governmental  functions, or  advises the  government on
               such functions. These may include determining and implementing policies, enforcing laws, proposing
               and/or  implementing  legislation,  adopting  and  implementing  by-laws/normative  decrees,  taking
               decisions  on  government  expenditure,  taking  decisions  on  the  appointment  of  individuals  to  top
               executive functions.

               19.    The GET notes that the Head of State in the Netherlands does not actively participate on a
               regular basis in the development and/or execution of governmental functions. The role of the King is
               clearly of a representative and ceremonial nature and the few links to the executive branch that exist
               are limited to ceremonial/formal decisions and in these situations the King is clearly to be guided by
               the government, within the constraints set by the Constitution, laws and precedents. This prevents
               the King from exercising discretionary powers in an executive capacity. It follows that the Head of
               State in the Netherlands does not fall within the category of “persons who are entrusted with top
               executive functions” (PTEFs) which is covered by the current Evaluation Round.

               Status and remuneration of persons with top executive functions

               20.    A new government (Cabinet or Council of Ministers) is formed after parliamentary elections
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               following a coalition negotiation process  through which an agreement is to be reached between the

               9  Article 42 of the Constitution. Ministerial responsibility, linked to royal inviolability, was introduced in 1848.
               10  Because of the strict proportional voting system of the Netherlands, no single party has ever won an absolute majority in
               the House of Representatives. At least two parties have always been needed in order to form a majority coalition. This
               usually leads to complicated and lengthy negotiations. At the end of the formation, the new Prime Minister reports to the
               House of Representatives on the formation process.


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